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  4. [8-K] Stride, Inc. Reports Material Event

Stride Inc. (NYSE: LRN) boosts 2026 earnings and extends $311.3M buyback

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Stride, Inc. reported higher results for fiscal year 2026. Revenue was $2,518.1 million versus $2,405.3 million, income from operations $450.8 million versus $360.1 million, and net income $338.2 million versus $287.9 million. Diluted EPS rose to $7.14 from $5.95, while adjusted EPS was $8.33 versus $8.10. Adjusted EBITDA increased to $617.6 million from $571.0 million.

Fourth-quarter 2026 revenue was $636.1 million, down from $653.6 million, but income from operations nearly doubled to $105.9 million from $56.9 million and net income rose to $81.4 million from $51.3 million, with diluted EPS at $1.75 versus $1.03. Some non-GAAP measures eased, including adjusted operating income of $117.8 million versus $130.6 million and adjusted EPS of $2.12 versus $2.29.

Average full-year enrollments increased to 243.9K from 234.0K, including 109.7K Career Learning enrollments. Revenue per enrollment was $9,914, up from $9,677. Cash and marketable securities totaled $1,034.1 million. Stride repurchased about 2.3 million shares for $188.7 million, and its stock repurchase program was extended to October 31, 2027 with $311.3 million of remaining authorization.

Positive

  • Strong full-year profitability growth: Fiscal 2026 income from operations rose 25.2% to $450.8 million, net income increased 17.5% to $338.2 million, and diluted EPS grew 20.0% to $7.14 on 4.7% revenue growth to $2,518.1 million.
  • High cash balance and capital returns: Cash and marketable securities totaled $1,034.1 million at June 30, 2026, and the company repurchased approximately 2.3 million shares for $188.7 million, with $311.3 million remaining under an extended buyback authorization through October 31, 2027.

Negative

  • Adult Learning revenue contracted sharply: Adult Career Learning revenue declined 29.6% year over year to $56.6 million, including a 31.1% decrease in the fourth quarter, signaling pressure in that segment despite overall company growth.

Filing Explained

As of June 30, 2026, repurchases had reduced shares outstanding; the extended $311.3 million authorization remains optional through October 31, 2027.

The company extended its stock repurchase authorization through October 31, 2027, leaving up to $311.3 million available; this creates repurchase capacity but does not itself commit the company to buy more shares.

Form 8-K reports specified material events, and this filing reports the authorization's extended state under Item 8.01 alongside the fiscal-year results.

The $311.3 million is a ceiling on future purchases, not a committed cash outflow: the company says purchases may be suspended or discontinued, and their timing, price, and size are undecided.

Completed fiscal 2026 repurchases left 41,477,230 common shares outstanding at June 30, 2026, versus 43,517,676 a year earlier, while treasury stock increased to 7,649,687 shares from 5,334,743.

The next state change would be an actual purchase under the authorization before October 31, 2027; the filing identifies purchase activity, rather than the authorization itself, as the unresolved item.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 8.01 Other Events Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Fiscal 2026 Revenue $2,518.1 million Year ended June 30, 2026; up 4.7% from $2,405.3 million
Fiscal 2026 Net Income $338.2 million Year ended June 30, 2026; up 17.5% from $287.9 million
Fiscal 2026 Diluted EPS $7.14 Year ended June 30, 2026; up from $5.95, a 20.0% increase
Fiscal 2026 Adjusted EBITDA $617.6 million Year ended June 30, 2026; up 8.2% from $571.0 million
Q4 2026 Revenue $636.1 million Three months ended June 30, 2026; down 2.7% from $653.6 million
Cash and Marketable Securities $1,034.1 million Balance as of June 30, 2026
Shares Repurchased FY 2026 2.3 million shares for $188.7 million Common stock repurchased under share repurchase authorization
Remaining Buyback Authorization $311.3 million Capacity under stock repurchase program as of June 30, 2026
Adjusted EBITDA financial
"Adjusted EBITDA of $617.6 million, compared with $571.0 million (1)"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Career Learning financial
"Total Career Learning revenue was $1,100,296 thousand in fiscal 2026"
capped call transaction financial
"shares expected to be received for the capped call transaction related to Stride’s convertible senior notes"
A capped call transaction is a package of option-like contracts a company buys to limit how many new shares it must issue if holders convert convertible securities into stock. Think of it as an insurance policy with a payout ceiling: it offsets dilution for existing shareholders up to a set stock-price cap, but stops protecting beyond that level. Investors care because it changes how many shares will circulate and how much upside the company or converters keep, affecting earnings per share and stock value.
equity method investments financial
"Loss from equity method investments was $(205) thousand in fiscal 2026"
An equity method investment is an accounting approach used when a company owns a significant share of another company and can influence its decisions but does not fully control it; instead of listing the investment at cost, the investor records its share of the other company's profits or losses on its own income statement and adjusts the investment value on the balance sheet. For investors, this matters because it links the investor’s reported earnings and asset values directly to the financial performance of that partly-owned business, similar to how a partner’s gains affect a small business owner’s books.
stock repurchase program financial
"existing stock repurchase program ... extended through October 31, 2027"
A stock repurchase program is when a company buys back its own shares from the market. This can make each remaining share more valuable and shows that the company believes its stock is a good investment. It’s like a business treating its shares like a limited resource, hoping to boost confidence and share prices.
Revenue $2,518.1 million full year; $636.1 million Q4 Full year up 4.7%; Q4 down 2.7% vs 2025
Net income $338.2 million full year; $81.4 million Q4 Full year up 17.5%; Q4 up 58.6% vs 2025
Diluted EPS $7.14 full year; $1.75 Q4 Full year up 20.0%; Q4 up 69.9% vs 2025
Adjusted EBITDA $617.6 million full year; $149.8 million Q4 Full year up 8.2%; Q4 down 5.4% vs 2025

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FAQ

How did Stride (LRN) perform financially in fiscal year 2026?
Stride reported fiscal 2026 revenue of $2,518.1 million, up 4.7% from 2025. Net income was $338.2 million versus $287.9 million, and diluted EPS increased to $7.14 from $5.95, with adjusted EBITDA rising to $617.6 million.

What were Stride (LRN) fourth-quarter 2026 results compared to 2025?
Fourth-quarter 2026 revenue was $636.1 million, down 2.7% from $653.6 million. However, income from operations rose to $105.9 million from $56.9 million and net income increased to $81.4 million from $51.3 million, with diluted EPS at $1.75 versus $1.03.

What is the status of Stride (LRN) share repurchase program?
Stride’s stock repurchase program was extended through October 31, 2027 and has remaining capacity of $311.3 million. In fiscal 2026, the company repurchased about 2.3 million shares for approximately $188.7 million under this authorization.

What is Stride (LRN) cash position and capital spending for 2026?
As of June 30, 2026, Stride held $1,034.1 million in cash, cash equivalents, and marketable securities. Capital expenditures totaled $78.8 million, including $61.6 million for capitalized software and $16.6 million for capitalized curriculum development.

How did Stride’s (LRN) Career Learning and General Education revenues change?
In fiscal 2026, Total Career Learning revenue was $1,100.3 million, up 15.0% year over year, driven mainly by Middle-High School. General Education revenue was $1,417.8 million, down 2.1% from 2025, reflecting softer performance in that segment.
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________

FORM 8-K

_________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  August 4, 2026

_______________________________

Stride, Inc.

(Exact name of registrant as specified in its charter)

_______________________________

Delaware001-3388395-4774688
(State or Other Jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer Identification No.)

11720 Plaza America Drive, 9th Floor

Reston, Virginia 20190

(Address of Principal Executive Offices) (Zip Code)

(703) 483-7000

(Registrant's telephone number, including area code)

NA

(Former name or former address, if changed since last report)

_______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.0001 par value per shareLRNNew York Stock Exchange (NYSE)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 
 
Item 2.02. Results of Operations and Financial Condition.

 

On August 4, 2026, Stride, Inc. (the “Company”) issued a press release announcing its financial results for the fourth quarter and full fiscal year ended June 30, 2026. A copy of the Company’s press release is furnished herewith as Exhibit 99.1.

 

The information contained in this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise be subject to the liabilities of that Section. The information in this Item 2.02, including Exhibit 99.1, shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

Item 8.01. Other Events.

 

On August 4, 2026, the Company announced that the Company’s existing stock repurchase program, which was previously set to expire on October 31, 2026, was extended through October 31, 2027. The stock repurchase program has remaining availability for the repurchase of up to $311.3 million of the Company’s common stock.

 

Under the repurchase program, repurchases can be made from time to time using a variety of methods, which may include open market purchases, privately negotiated transactions, or otherwise, all in accordance with the rules of the Securities and Exchange Commission and other applicable legal requirements. The specific timing, price and size of purchases will depend on prevailing stock prices, general economic and market conditions, and other considerations. The repurchase program does not obligate the Company to acquire any particular amount of its common stock, and the repurchase program may be suspended or discontinued at any time at the Company’s discretion.

 

Forward-Looking Statements

 

This 8-K contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this 8-K are forward-looking statements, including, but not limited to, statements as to any future share repurchases, the manner thereof, and the implementation of any capital allocation strategy. We have tried, whenever possible, to identify these forward-looking statements using words such as “outlook,” “forecasts,” “anticipates,” “trends,” “believes,” “estimates,” “continues,” “likely,” “may,” “opportunity,” “potential,” “projects,” “will,” “will be,” “expects,” “plans,” “intends,” “should,” “would” and similar expressions to identify forward-looking statements, whether in the negative or the affirmative. These statements reflect our current beliefs and are based upon information currently available to us. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause our actual actions, results, performance or achievements to differ materially from those expressed in, or implied by, such statements. These risks, uncertainties, factors and contingencies include, but are not limited to: reduction of per pupil funding amounts at the schools we serve; inability to achieve a sufficient level of new enrollments to sustain our business model or to meet financial or operational guidance; limitations of the enrollment data we present, which may not fully capture trends in the performance of our business; failure to enter into new school contracts or renew existing contracts, in part or in their entirety; failure of the schools we serve, our vendors, or us to comply with our contracts, or federal, state and local laws and regulations, resulting in a loss of funding, an obligation to repay funds previously received, contractual remedies, or actions or proceedings against us; governmental investigations that could result in fines, penalties, settlements, or injunctive relief; declines or variations in academic performance outcomes of the students and schools we serve, including due to the evolution of curriculum standards, testing programs and state accountability metrics; harm to our reputation resulting from poor performance or misconduct by operators or us in any school in our industry and/or in any school which we operate; legal and regulatory challenges from opponents of virtual public education or for-profit education companies; potential violation of laws and regulations relating to privacy and data protection, including such laws and regulations as may apply to children’s data; changes in national and local economic and business conditions and other factors, such as natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments; discrepancies in interpretation of legislation by regulatory agencies that may lead to payment or funding disputes; termination of our contracts, or a reduction or termination in the scope of services, with schools; failure to develop the Career Learning business; entry of new competitors with superior technologies (including artificial intelligence (“AI”)) and lower prices; unsuccessful integration of mergers, acquisitions and joint ventures; failure to further develop, maintain and enhance our technology, products, services and brands; inadequate recruiting, training and retention of effective teachers and employees; infringement of our intellectual property; disruptions to our Internet-based learning and delivery systems, including, but not limited to, our data storage systems and third-party cloud infrastructure, systems and facilities, including as a result of cybersecurity attacks; misuse or unauthorized disclosure of student and personal data; failure to prevent or mitigate a cybersecurity incident that affects our systems or our data; problems in the implementation of new information technology systems and technology; failure by us or third parties to maintain and support information technology systems, including addressing quality issues and timely delivering new products and enhancements; risks related to the use, implementation and regulation of AI and other emerging technologies, including in the education of children, and their use by third-party vendors; risks related to our stock repurchase program; the extent to which we acquire businesses or change our capital allocation strategy or the implementation thereof; changes in our effective tax rate and additional liabilities; and other risks and uncertainties associated with our business described in the risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended June 30, 2025 and any subsequently filed Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q or the Company’s other filings with the Securities and Exchange Commission. Forward-looking statements reflect our management’s expectations or predictions of future conditions, events or results based on various assumptions and estimates. They are not guarantees of future performance. Our actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in any such forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements in this 8-K or that we make from time to time, and to consider carefully the factors discussed above. All information in this 8-K is as of today’s date, and the Company undertakes no obligation to update any forward-looking statement as a result of new information, future events or otherwise, except where we are expressly required to do so by law.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit No. Description
   
99.1 Press Release regarding financial results for the quarter and year ended June 30, 2026
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 
 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 Stride, Inc.
   
  
Date: August 4, 2026By: /s/ Greerson G. McMullen        
  Greerson G. McMullen
  EVP, General Counsel & Secretary
  

 

EXHIBIT 99.1

Stride reports fourth quarter and full year 2026 financial results

RESTON, Va., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Stride, Inc. (NYSE: LRN), one of the nation’s most successful technology-based education companies, today announced its results for the fourth quarter and full fiscal year ended June 30, 2026.

“I am pleased to lead Stride as we position the Company for its next chapter of growth,” said Robert Knowling, Stride Chief Executive Officer. “Building on Stride’s strong foundation, we will continue to prioritize investments in curriculum, technology and support services to improve student outcomes and drive growth and value creation. I look forward to working alongside our talented team and leveraging our full breadth of capabilities to reach Stride's full potential.”

Fiscal 2026 Highlights Compared to 2025

  • Revenue of $2,518.1 million, compared with $2,405.3 million
  • Income from operations of $450.8 million, compared with $360.1 million
  • Net income of $338.2 million, compared with $287.9 million
  • Diluted net income per share of $7.14, compared with $5.95
  • Adjusted operating income of $498.4 million, compared with $466.2 million (1)
  • Adjusted EBITDA of $617.6 million, compared with $571.0 million (1)
  • Adjusted earnings per share of $8.33, compared with $8.10 (1)
  • Repurchased approximately $188.7 million of common stock under the Company’s share repurchase authorization
  • Share repurchase authorization extended through October 31, 2027

Fiscal 2026 Summary Financial Metrics

 Year Ended June 30,
 Change 2026/2025
 2026
 2025
 $
 %
 (In thousands, except percentages and per share data)
Revenues$2,518,081  $2,405,317  $112,764  4.7%
              
Income from operations 450,767   360,094   90,673  25.2%
Adjusted operating income (1) 498,373   466,233   32,140  6.9%
              
Net income 338,192   287,941   50,251  17.5%
Net income per share, diluted 7.14   5.95   1.19  20.0%
Adjusted earnings per share (1) 8.33   8.10   0.23  2.8%
              
EBITDA (1) 577,329   474,763   102,566  21.6%
Adjusted EBITDA (1) 617,584   571,035   46,549  8.2%

(1) To supplement our financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), we also present non-GAAP financial measures including adjusted operating income (loss), EBITDA, adjusted EBITDA, and adjusted earnings per share. Management believes that these additional measures provide useful information to investors relating to our financial performance. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below.

Fourth Quarter Fiscal 2026 Highlights Compared to 2025

  • Revenue of $636.1 million, compared with $653.6 million
  • Income from operations of $105.9 million, compared with $56.9 million
  • Net income of $81.4 million, compared with $51.3 million
  • Diluted net income per share of $1.75, compared with $1.03
  • Adjusted operating income of $117.8 million, compared with $130.6 million (1)
  • Adjusted EBITDA of $149.8 million, compared with $158.4 million (1)
  • Adjusted earnings per share of $2.12, compared with $2.29 (1)
  • Repurchased approximately $100 million of common stock under the Company’s share repurchase authorization

Fourth Quarter Fiscal 2026 Summary Financial Metrics

 Three Months Ended June 30, Change 2026/2025
 2026 2025 $ %
 (In thousands, except percentages and per share data)
Revenues$636,064  $653,647  $(17,583) (2.7%)
             
Income from operations 105,852   56,864   48,988  86.1%
Adjusted operating income (1) 117,814   130,558   (12,744) (9.8%)
             
Net income 81,388   51,320   30,068  58.6%
Net income per share, diluted 1.75   1.03   0.72  69.9%
Adjusted earnings per share (1) 2.12   2.29   (0.17) (7.4%)
             
EBITDA (1) 139,631   87,063   52,568  60.4%
Adjusted EBITDA (1) 149,823   158,413   (8,590) (5.4%)
               

Revenue Data

 Three Months Ended      Year Ended     
 June 30, Change 2026 / 2025 June 30, Change 2026 / 2025
 2026 2025 $ % 2026  2025 $ %
 (In thousands, except percentages)
                      
General Education$355,809 $394,134 $(38,325) (9.7%) $1,417,785 $1,448,676 $(30,891) (2.1%)
Career Learning                     
Middle - High School 267,116  240,455  26,661  11.1%  1,043,726  876,287  167,439  19.1%
Adult 13,139  19,058  (5,919) (31.1%)  56,570  80,354  (23,784) (29.6%)
Total Career Learning 280,255  259,513  20,742  8.0%  1,100,296  956,641  143,655  15.0%
Total Revenues$636,064 $653,647 $(17,583) (2.7%) $2,518,081 $2,405,317 $112,764  4.7%
                      

Enrollment and Revenue Per Enrollment Data

Full year enrollments averaged 243.9K, up 4.2% compared to 234.0K enrollments in fiscal year 2025. Of the total enrollments, 109.7K were Career Learning enrollments, up 13.9% compared to 96.3K Career Learning enrollments in fiscal 2025.

Fourth quarter enrollments averaged 234.2K, down (0.5)% compared to 235.3K enrollments in the fourth quarter of fiscal year 2025. Of the total average enrollments, 106.4K were Career Learning enrollments, up 9.7% compared to 97.0K Career Learning enrollments in the fourth quarter of fiscal 2025.

Enrollments only include those students in full service public or private programs where Stride provides a combination of curriculum, technology, and instructional and support services, inclusive of administrative support and may include enrollments for which Stride receives no public funding or revenue. Stride does not report enrollments for our Adult Learning business.

Revenue per enrollment for the full fiscal year 2026 was $9,914, up 2.4% compared to $9,677 in fiscal year 2025. General Education revenue per enrollment was $10,243, up 1.6%, and Career Learning revenue per enrollment was $9,512, up 4.5%, compared to fiscal year 2025. If the mix of enrollments changes, our revenues will be impacted to the extent the average revenues per enrollments are significantly different.

Revenue per enrollment for the fourth quarter was $2,620, down (0.4)% compared to $2,630 in the fourth quarter of fiscal year 2025. General Education revenue per enrollment was $2,710, down (1.0)% compared to the fourth quarter of fiscal year 2025, and Career Learning revenue per enrollment was $2,511, up 1.3%, compared to the fourth quarter of fiscal year 2025.

Cash Flow and Capital Allocation

As of June 30, 2026, the Company’s cash and cash equivalents and marketable securities totaled $1,034.1 million, compared with $1,011.4 million reported at June 30, 2025.

Capital expenditures for the fiscal year ended June 30, 2026 were $78.8 million, compared to $60.0 million in fiscal year 2025, and were comprised of $0.6 million of property and equipment, $61.6 million of capitalized software development and $16.6 million of capitalized curriculum development.

During fiscal year 2026, the Company repurchased approximately 2.3 million shares of its common stock for an aggregate purchase price of approximately $188.7 million under its previously announced share repurchase authorization. As of June 30, 2026, approximately $311.3 million remained available under the current authorization. The Company continues to evaluate share repurchases as part of its disciplined capital allocation strategy.

Conference Call

The Company will discuss its fourth quarter and full fiscal year 2026 financial results during a conference call scheduled for Tuesday, August 4, 2026 at 5:00 p.m. eastern time (ET).

A live webcast of the call will be available at investors.stridelearning.com/events-and-presentations. To participate in the live call, investors and analysts should dial (833) 461-5787 (domestic) or +1 (585) 542-9983 (international) and provide the conference ID number 708 877 615. Please access the website at least 15 minutes prior to the start of the call.

A replay of the call will be posted at investors.stridelearning.com/events-and-presentations.

About Stride Inc.

Stride Inc. (NYSE: LRN) is redefining lifelong learning with innovative, high-quality education solutions. Serving learners in primary, secondary, and postsecondary settings, Stride provides a wide range of services including K-12 education, career learning, professional skills training, and talent development. Stride reaches learners in all 50 states and over 100 countries. Learn more at stridelearning.com.

Investor Contact
ir@k12.com		Media Contact
press@k12.com
  

Special Note on Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements, such as any statements that look to future events and include, among other things, our expectations regarding: mix of enrollment, revenue per enrollment, and future share repurchases. We have tried, whenever possible, to identify these forward-looking statements using words such as “outlook,” “forecasts,” “anticipates,” “trends,” “believes,” “estimates,” “continues,” “likely,” “may,” “opportunity,” “potential,” “projects,” “will,” “will be,” “expects,” “plans,” “intends,” “should,” “would” and similar expressions to identify forward-looking statements, whether in the negative or the affirmative. These statements reflect our current beliefs and are based upon information currently available to us. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause our actual results, performance or achievements to differ materially from those expressed in, or implied by, such statements. These risks, uncertainties, factors and contingencies include, but are not limited to: reduction of per pupil funding amounts at the schools we serve; inability to achieve a sufficient level of new enrollments to sustain our business model or to meet financial or operational guidance; limitations of the enrollment data we present, which may not fully capture trends in the performance of our business; failure to enter into new school contracts or renew existing contracts, in part or in their entirety; failure of the schools we serve, our vendors, or us to comply with our contracts, or federal, state and local laws and regulations, resulting in a loss of funding, an obligation to repay funds previously received, contractual remedies, or actions or proceedings against us; governmental investigations that could result in fines, penalties, settlements, or injunctive relief; declines or variations in academic performance outcomes of the students and schools we serve, including due to the evolution of curriculum standards, testing programs and state accountability metrics; harm to our reputation resulting from poor performance or misconduct by operators or us in any school in our industry and/or in any school which we operate; legal and regulatory challenges from opponents of virtual public education or for-profit education companies; potential violation of laws and regulations relating to privacy and data protection, including as such laws and regulations may apply to children’s data; changes in national and local economic and business conditions and other factors, such as natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments; discrepancies in interpretation of legislation by regulatory agencies that may lead to payment or funding disputes; termination of our contracts, or a reduction or termination in the scope of services, with schools; failure to develop the Career Learning business; entry of new competitors with superior technologies (including artificial intelligence (“AI”)) and lower prices; unsuccessful integration of mergers, acquisitions and joint ventures; failure to further develop, maintain and enhance our technology, products, services and brands; inadequate recruiting, training and retention of effective teachers and employees; infringement of our intellectual property; disruptions to our Internet-based learning and delivery systems, including, but not limited to, our data storage systems and third-party cloud infrastructure, systems and facilities, including as a result of cybersecurity attacks; misuse or unauthorized disclosure of student and personal data; failure to prevent or mitigate a cybersecurity incident that affects our systems or our data; problems in the implementation of new information technology systems and technology; failure by us or third parties to maintain and support information technology systems, including addressing quality issues and timely delivering new products and enhancements; risks related to the use, implementation and regulation of AI and other emerging technologies, including in the education of children, and their use by third-party vendors; risks related to our stock repurchase program; changes in our effective tax rate and additional liabilities; and other risks and uncertainties associated with our business described in the risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended June 30, 2025 and any subsequently filed Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q or the Company’s other filings with the Securities and Exchange Commission. Forward-looking statements reflect our management’s expectations or predictions of future conditions, events or results based on various assumptions and estimates. They are not guarantees of future performance. Our actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements in this press release or that we make from time, and to consider carefully the factors discussed above. All information in this press release is as of today’s date, and the Company undertakes no obligation to update any forward-looking statement as a result of new information, future events or otherwise, except where we are expressly required to do so by law.

Financial Statements

The financial statements set forth below are not the complete set of Stride, Inc.’s financial statements for the three months and year ended June 30, 2026 and are presented below without footnotes. Readers are encouraged to obtain and carefully review Stride Inc.’s Annual Report on Form 10-K for the year ended June 30, 2026, including all financial statements contained therein and the footnotes thereto, filed with the SEC, which may be retrieved from the SEC’s website at www.sec.gov or from Stride Inc.’s Investor Relations website at investors.stridelearning.com.

    
STRIDE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS
    
 Three Months Ended Year Ended
 June 30, June 30,
 2026 2025 2026 2025
 (In thousands except share and per share data)
Revenues$636,064  $653,647  $2,518,081  $2,405,317 
Instructional costs and services 418,781   414,728   1,567,481   1,461,398 
Gross margin 217,283   238,919   950,600   943,919 
Selling, general, and administrative expenses 111,431   122,577   499,833   524,347 
Impairment of long-lived assets —   59,478   —   59,478 
Income from operations 105,852   56,864   450,767   360,094 
Interest expense, net (2,889)  (2,693)  (11,778)  (10,504)
Other income, net 1,362   10,160   2,173   33,629 
Income before income taxes and loss from equity method investments 104,325   64,331   441,162   383,219 
Income tax expense (22,831)  (12,919)  (102,765)  (93,007)
Loss from equity method investments (106)  (92)  (205)  (2,271)
Net income attributable to common stockholders$81,388  $51,320  $338,192  $287,941 
Net income attributable to common stockholders per share:           
Basic$1.93  $1.19  $7.92  $6.69 
Diluted$1.75  $1.03  $7.14  $5.95 
Weighted average shares used in computing per share amounts:           
Basic 42,091,404   43,186,913   42,717,156   43,041,274 
Diluted 46,388,112   49,767,056   47,332,855   48,413,717 
                


STRIDE, INC.
CONSOLIDATED BALANCE SHEETS
  
 June 30,
 2026 2025
ASSETS(In thousands except share and per share data)
      
Current assets     
Cash and cash equivalents$754,501  $782,497 
Accounts receivable, net of allowance of $31,302 and $31,124 664,788   559,646 
Inventories, net 38,250   37,570 
Prepaid expenses 43,052   35,579 
Marketable securities 203,499   202,769 
Other current assets 12,033   14,673 
Total current assets 1,716,123   1,632,734 
Property and equipment, net 102,042   78,582 
Capitalized software, net 95,002   75,314 
Capitalized curriculum development costs, net 56,895   58,584 
Intangible assets, net 10,876   18,227 
Goodwill 246,676   246,676 
Deferred tax asset —   26,377 
Deposits and other assets 207,938   157,465 
Total assets$2,435,552  $2,293,959 
LIABILITIES AND STOCKHOLDERS' EQUITY     
Current liabilities     
Accounts payable$46,742  $43,962 
Accrued liabilities 95,446   103,276 
Accrued compensation and benefits 62,896   74,939 
Deferred revenue 20,553   26,995 
Current portion of finance lease liability 60,477   42,316 
Current portion of operating lease liability 2,737   11,391 
Total current liabilities 288,851   302,879 
Long-term finance lease liability 56,455   44,567 
Long-term operating lease liability 8,316   35,164 
Long-term debt 417,995   416,322 
Deferred tax liability 13,033   — 
Other long-term liabilities 18,573   15,408 
Total liabilities 803,223   814,340 
Commitments and contingencies     
Stockholders’ equity     
Preferred stock, par value $0.0001; 10,000,000 shares authorized; zero shares issued or outstanding —   — 
Common stock, par value $0.0001; 100,000,000 shares authorized; 49,126,917 and 48,852,419 shares issued; and 41,477,230 and 43,517,676 shares outstanding, respectively 4   4 
Additional paid-in capital 739,829   735,711 
Accumulated other comprehensive loss (59)  (67)
Retained earnings 1,184,645   846,453 
Treasury stock of 7,649,687 and 5,334,743 shares at cost, respectively (292,090)  (102,482)
Total stockholders’ equity 1,632,329   1,479,619 
Total liabilities and stockholders' equity$2,435,552  $2,293,959 
        


STRIDE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS
  
 Year Ended
 June 30,
 2026 2025
 (In thousands)
Cash flows from operating activities     
Net income$338,192  $287,941 
Adjustments to reconcile net income to net cash provided by operating activities:     
Depreciation and amortization expense 126,562   114,669 
Stock-based compensation expense 40,255   36,794 
Deferred income taxes 39,993   (17,783)
Provision for credit losses 16,463   15,267 
Amortization of fees on debt 1,673   1,647 
Noncash operating lease expense 5,063   12,265 
Impairment of long-lived assets —   59,478 
Other 20,514   (596)
Changes in assets and liabilities:     
Accounts receivable (121,370)  (102,188)
Inventories, prepaid expenses, deposits and other current and long-term assets 6,538   (6,239)
Accounts payable 2,164   310 
Accrued liabilities (10,188)  40,915 
Accrued compensation and benefits (11,828)  9,913 
Operating lease liability (16,943)  (12,396)
Deferred revenue and other liabilities (3,274)  (7,181)
Net cash provided by operating activities 433,814   432,816 
Cash flows from investing activities     
Purchase of property and equipment (587)  (1,781)
Capitalized software development costs (61,591)  (36,428)
Capitalized curriculum development costs (16,668)  (21,801)
Other acquisitions, loans and investments, net of distributions (55,538)  (20,682)
Proceeds from the maturity of marketable securities 279,497   252,930 
Purchases of marketable securities (324,941)  (260,233)
Net cash used in investing activities (179,828)  (87,995)
Cash flows from financing activities     
Repayments on finance lease obligations (56,856)  (41,469)
Purchase of treasury stock (188,659)  - 
Repurchase of restricted stock for income tax withholding (36,467)  (21,469)
Net cash used in financing activities (281,982)  (62,938)
Net change in cash, cash equivalents and restricted cash (27,996)  281,883 
Cash, cash equivalents and restricted cash, beginning of period 782,497   500,614 
Cash, cash equivalents and restricted cash, end of period$754,501  $782,497 
        

Non-GAAP Financial Measures

To supplement our financial statements presented in accordance with GAAP, we have presented adjusted operating income (loss), EBITDA, adjusted EBITDA, and adjusted earnings per share, which are not presented in accordance with GAAP.

  • Adjusted operating income (loss) is defined as income (loss) from operations as adjusted for amortization of intangible assets, stock-based compensation, and other one-time charges or gains.
  • EBITDA is defined as income (loss) from operations as adjusted for depreciation and amortization.
  • Adjusted EBITDA is defined as income (loss) from operations as adjusted for depreciation and amortization, stock-based compensation, and other one-time charges or gains.
  • Adjusted earnings per share (adjusted EPS) is defined as net income (loss) attributable to common stockholders as adjusted for the amortization of intangible assets, stock-based compensation, and other one-time charges or gains net of tax impact divided by the diluted weighted average number of common shares outstanding less the shares expected to be received for the capped call transaction related to Stride’s convertible senior notes.

Adjusted operating income (loss), adjusted EBITDA, and adjusted EPS exclude stock-based compensation, which consists of expenses for restricted stock, restricted stock units, and performance stock units.

Management believes that the presentation of these non-GAAP financial measures provides useful information to investors relating to our financial performance. Adjusted operating income (loss), adjusted EBITDA and adjusted EPS remove stock-based compensation, which is a non-cash charge that varies based on market volatility and the terms and conditions of the awards. EBITDA and adjusted EBITDA remove depreciation and amortization, which can vary depending upon accounting methods and the book value of assets. Adjusted operating income (loss), adjusted EBITDA and adjusted earnings per share remove one-time charges or gains which are not related to core operating activities and are not indicative of our ongoing operating performance. Additionally, adjusted EPS includes the impact from shares expected to be received by the Company to offset potential dilution from the convertible senior notes. EBITDA and adjusted EBITDA provide a measure of corporate performance exclusive of capital structure and the method by which assets were acquired.

Management uses these non-GAAP financial measures:

  • as additional measures of operating performance because they assist in comparing the Company’s performance on a consistent basis; and
  • in presentations to the members of the Company’s Board of Directors to enable the Board to review the same measures used by management to compare the Company’s current operating results with corresponding prior periods.

Other companies may define these non-GAAP financial measures differently and, as a result, these non-GAAP financial measures may not be directly comparable to similar non-GAAP financial measures used by other companies. Although these non-GAAP financial measures are used to assess the performance of the business, the use of non-GAAP financial measures is limited as they include and/or do not include certain items included and/or not included in the most directly comparable GAAP financial measure.

These non-GAAP financial measures should be considered in addition to, and not as a substitute for, revenues, income (loss) from operations, net income (loss) and diluted net income (loss) per share or other related financial information prepared in accordance with GAAP. Adjusted EBITDA is not intended to be a measure of liquidity. You are cautioned not to place undue reliance on these non-GAAP financial measures.

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below.

Fourth Quarter and Full Fiscal Year 2026

Reconciliation of Income from Operations to Adjusted Operating Income

 Three Months Ended
 Year Ended
 June 30,
 June 30,
 2026
 2025
 2026
 2025
 (In thousands) 
Income from operations$105,852  $56,864  $450,767  $360,094 
Amortization of intangible assets 1,770   2,344   7,351   9,867 
Stock-based compensation expense 10,192   11,872   40,255   36,794 
Impairment of long-lived assets -   59,478   -   59,478 
Adjusted operating income$117,814  $130,558  $498,373  $466,233 
            

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

 Three Months Ended
June 30,		 Year Ended
June 30,
  2026   2025   2026   2025 
 (In thousands)
Net income$81,388  $51,320  $338,192  $287,941 
Interest expense, net 2,889   2,693   11,778   10,504 
Other income, net (1,362)  (10,160)  (2,173)  (33,629)
Income tax expense 22,831   12,919   102,765   93,007 
Loss from equity method investments 106   92   205   2,271 
Depreciation and amortization 33,779   30,199   126,562   114,669 
EBITDA 139,631   87,063   577,329   474,763 
Stock-based compensation expense 10,192   11,872   40,255   36,794 
Impairment of long-lived assets -   59,478   -   59,478 
Adjusted EBITDA$149,823  $158,413  $617,584  $571,035 
                

Reconciliation of Net Income Attributable to Common Shareholders and Diluted Net Income Per Share to Adjusted Earnings Per Share

 Three Months Ended Year Ended
 June 30, June 30,
  2026   2025   2026   2025 
 (In thousands)
Net income attributable to common stockholders$81,388  $51,320  $338,192  $287,941 
Amortization of intangible assets 1,770   2,344   7,351   9,867 
Stock-based compensation expense 10,192   11,872   40,255   36,794 
Impairment of long-lived assets -   59,478   -   59,478 
Income tax effect from adjustments above (1,188)  (15,309)  (12,937)  (21,442)
Adjusted net income attributable to common stockholders$92,162  $109,705  $372,861  $372,638 
        
Share computation:       
Weighted average common shares — diluted 46,388,112   49,767,056   47,332,855   48,413,717 
Effect of capped call transactions (2,876,857)  (1,827,961)  (2,568,353)  (2,396,207)
Adjusted weighted average common shares — diluted 43,511,255   47,939,095   44,764,502   46,017,510 
Adjusted earnings per share$2.12  $2.29  $8.33  $8.10 
        
 Three Months Ended Year Ended
 June 30, June 30,
  2026   2025   2026   2025 
 (per share)
Diluted net income per share$1.75  $1.03  $7.14  $5.95 
Amortization of intangible assets 0.04   0.05   0.16   0.20 
Stock-based compensation expense 0.23   0.24   0.85   0.76 
Impairment of long-lived assets -   1.20   -   1.23 
Income tax effect from adjustments above (0.03)  (0.31)  (0.27)  (0.44)
Effect of capped call transactions 0.13   0.08   0.45   0.40 
Adjusted earnings per share$2.12  $2.29  $8.33  $8.10 
        


Source: View Original Filing on SEC EDGAR

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